farm structures - european commission

26
1 Farm structures Content 1. EU farms - characteristics and trends .................................................................................................................................................................................. 3 Physical farm size ................................................................................................................................................................................................................... 4 Economic farm size ................................................................................................................................................................................................................ 8 Declining farm numbers ....................................................................................................................................................................................................... 11 Organisational structure ........................................................................................................................................................................................................ 13 Land ownership .................................................................................................................................................................................................................... 14 Farm types and specialisation ............................................................................................................................................................................................... 15 Land use by farm type .......................................................................................................................................................................................................... 16 Standard output by farm type ............................................................................................................................................................................................... 17 Structural diversity of farming.............................................................................................................................................................................................. 18 2. The agricultural labour force ............................................................................................................................................................................................. 20 How many people work in EU agriculture? ......................................................................................................................................................................... 20 Evolution of agricultural labour input .................................................................................................................................................................................. 21 Age of farmers ...................................................................................................................................................................................................................... 23 Age and farm size an inverse correlation? ......................................................................................................................................................................... 25 Gender of farmers ................................................................................................................................................................................................................. 26 Working patterns .................................................................................................................................................................................................................. 26 This document does not necessarily represent the official views of the European Commission Contact: DG Agriculture and Rural Development, Unit Farm Economics Tel: +32-2-29 91111 / E-mail: AGRI-[email protected] © European Union, 2018 - Reproduction authorised provided the source is acknowledged

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Page 1: Farm structures - European Commission

1

Farm structures

Content 1. EU farms - characteristics and trends .................................................................................................................................................................................. 3

Physical farm size ................................................................................................................................................................................................................... 4

Economic farm size ................................................................................................................................................................................................................ 8

Declining farm numbers ....................................................................................................................................................................................................... 11

Organisational structure ........................................................................................................................................................................................................ 13

Land ownership .................................................................................................................................................................................................................... 14

Farm types and specialisation ............................................................................................................................................................................................... 15

Land use by farm type .......................................................................................................................................................................................................... 16

Standard output by farm type ............................................................................................................................................................................................... 17

Structural diversity of farming.............................................................................................................................................................................................. 18

2. The agricultural labour force ............................................................................................................................................................................................. 20 How many people work in EU agriculture? ......................................................................................................................................................................... 20

Evolution of agricultural labour input .................................................................................................................................................................................. 21

Age of farmers ...................................................................................................................................................................................................................... 23

Age and farm size – an inverse correlation? ......................................................................................................................................................................... 25

Gender of farmers ................................................................................................................................................................................................................. 26

Working patterns .................................................................................................................................................................................................................. 26

This document does not necessarily represent the official views of the European Commission

Contact: DG Agriculture and Rural Development, Unit Farm Economics

Tel: +32-2-29 91111 / E-mail: [email protected]

© European Union, 2018 - Reproduction authorised provided the source is acknowledged

Page 2: Farm structures - European Commission

2

Figures

Figure 1: Number of farms by country, 2013 ............................................................................................................................................................................. 3

Figure 2: Number of agricultural holdings, 2013 ....................................................................................................................................................................... 3

Figure 3: Average physical farm size at NUTS 2 level, 2013 .................................................................................................................................................... 4 Figure 4: Percentage of farms with 100 ha UAA or more, 2013 ................................................................................................................................................ 5

Figure 5: Percentage of UAA managed by farms with 100 ha or more, 2013 ........................................................................................................................... 6 Figure 6: Threshold values (top 10% UAA) and number of farms above the threshold, 2013 .................................................................................................. 7 Figure 7: Distribution of farms by economic size class, 2013 ................................................................................................................................................... 8

Figure 8: Average economic farm size in SO per holding at NUTS 2 level, 2013 .................................................................................................................... 9 Figure 9: Key farm parameters by economic size class, EU-28, 2013 ..................................................................................................................................... 10

Figure 10: Trends in farm numbers, 2003-2013 ....................................................................................................................................................................... 11 Figure 11: EU farm numbers 1975-2013 .................................................................................................................................................................................. 11 Figure 12: Change in farm numbers by economic size class, EU-27, 2005-2013 .................................................................................................................... 12

Figure 13: Legal form of EU farms and type of labour force, 2013 ......................................................................................................................................... 13 Figure 14: Legal farm status by size class, EU-28, 2013 ......................................................................................................................................................... 13

Figure 15: Land farmed under tenancy arrangements, 2013 .................................................................................................................................................... 14

Figure 16: Holdings by farm type in the EU-15, 2013 ............................................................................................................................................................. 15

Figure 17: Holdings by farm type in the EU-N13, 2013 .......................................................................................................................................................... 15 Figure 18: Land use by farm type in the EU-15, 2013 ............................................................................................................................................................. 16

Figure 19: Land use by farm type in the EU-N13, 2013 .......................................................................................................................................................... 16 Figure 20: Standard output by farm type in the EU-15, 2013 .................................................................................................................................................. 17

Figure 21: Standard output by farm type in the EU-N13, 2013 ............................................................................................................................................... 17 Figure 22: Structural diversity in the Member States, 2010 ..................................................................................................................................................... 18 Figure 23: Structural diversity at regional level, 2010 ............................................................................................................................................................. 19

Figure 24: Share of employment in agriculture, 2016 .............................................................................................................................................................. 20 Figure 25: Evolution of agricultural labour input, EU-28 ........................................................................................................................................................ 21 Figure 26: Loss of agricultural jobs by country, 2005-2017 .................................................................................................................................................... 21

Figure 27: Change in agricultural labour by economic farm size, 2005-2013 ......................................................................................................................... 22 Figure 28: Share of farms by age group of manager (EU-27, 2013) ........................................................................................................................................ 23

Figure 29: Age structure of farm managers, 2013 .................................................................................................................................................................... 24 Figure 30: Average farm size by age group of farm manager, 2013 ........................................................................................................................................ 25 Figure 31: Age of farmer by size of farmland, EU-27, 2013 ................................................................................................................................................... 25

Figure 32: Gender of farmer by age group, EU-27, 2013 ........................................................................................................................................................ 26 Figure 33: Farmers' working time by farm size class, EU-27, 2013 ........................................................................................................................................ 26

Page 3: Farm structures - European Commission

3

1. EU farms - characteristics and trends

A total of roughly 11 million farms operated

in the EU-28 in 2013.

Romania alone accounted for 33% of all

farms (partly because even the smallest

holdings are included in its agricultural

census), followed by Poland (13%) and Italy

(9%)

Figure 1: Number of farms by country, 2013

Figure 2: Number of agricultural holdings, 2013

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

Data source: Eurostat

Page 4: Farm structures - European Commission

4

Physical farm size

The average farm in the EU-28 had 16.1 ha of

agricultural land in 2013. Big differences remain

between the EU-15 (28.1 ha/holding) and the 13

countries that joined the EU in 2004 or later (7.8

ha/holding).

Most farms in the EU-28 can be characterised as

small in physical terms, since 66% of them had

less than 5 ha of agricultural land and only 7%

had more than 50 ha of agricultural land in 2013.

Close to half (47%) of the very small (<5ha)

farms are located in Romania, with another 11%

in Poland.

On average, farms were biggest in the Czech

Republic (133 ha/farm) and smallest in Romania

(3.6 ha/farm).

In comparison with farms in other big agricultural

producing countries, European farms remain

rather small (Brazil: 64 ha; Chile: 107 ha; USA:

170 ha; Canada: 315 ha; Argentina: around 590

ha; Australia: more than 3 000 ha per holding).

Average physical farm size in the EU grew by 4

% per year between 2005 and 2013. Annual

growth rates in the EU-N13 (+4.5% per year)

were higher than in the EU-15 (+3.5% per year).

The 66% of all farms with less than 5 ha of

agricultural land occupy only 6.2% of the total

agricultural land in the EU-28, while the 7% with

50 ha or more cover 68%. This dualism is

particularly pronounced in Bulgaria, Hungary,

Slovakia and the Czech Republic, where some

very large corporate farms co-exist with

numerous very small family farms.

Figure 3: Average physical farm size at NUTS 2 level, 2013

See also Common Context Indicator 17: Agricultural holdings (farms)

and http://ec.europa.eu/agriculture/rural-area-economics/briefs/pdf/09_en.pdf

Data source: Eurostat

Page 5: Farm structures - European Commission

5

The percentage of farms with 100 ha UAA or

more underlines major differences in farm

structures across Member States – while one

out of five farms in the United Kingdom,

Luxembourg, Denmark and France works on

more than 100 ha, there are no or hardly any

such farms in Malta, Slovenia and Greece.

Figure 4: Percentage of farms with 100 ha UAA or more, 2013

22.3%

21.8%

21.1%

21.0%

17.8%

12.5%

12.1%

10.5%

9.5%

8.3%

5.9%

5.5%

3.6%

3.6%

3.4%

2.7%

2.5%

2.3%

1.8%

1.7%

1.5%

0.9%

0.8%

0.4%

0.3%

0.2%

0.2%

0.0%

0% 5% 10% 15% 20% 25%

United Kingdom

Luxembourg

Denmark

France

Czech Republic

Germany

Sweden

Slovakia

Estonia

Finland

Belgium

Spain

Netherlands

Latvia

Ireland

Lithuania

Bulgaria

Portugal

Austria

Hungary

Italy

Croatia

Poland

Romania

Cyprus

Greece

Slovenia

Malta

Data source: Eurostat

Page 6: Farm structures - European Commission

6

Farms with more than 100 ha UAA can cover

a very large part of the UAA, leaving only

very little land for smaller holdings. This

situation is particularly pronounced in

Slovakia, the Czech Republic and Bulgaria,

where (few) very big farms operate on close to

all agricultural land, while many very small

farms share the rest.

Figure 5: Percentage of UAA managed by farms with 100 ha or more, 2013

90%

88%

84%

75%

74%

69%

64%

62%

58%

57%

56%

55%

54%

53%

48%

47%

40%

35%

30%

27%

24%

23%

21%

20%

17%

16%

7%

0%

0% 20% 40% 60% 80% 100%

Slovakia

Czech Republic

Bulgaria

United Kingdom

Estonia

Denmark

Hungary

France

Portugal

Germany

Spain

Sweden

Luxembourg

Latvia

Romania

Lithuania

Croatia

Greece

Finland

Italy

Belgium

Ireland

Poland

Netherlands

Cyprus

Austria

Slovenia

Malta

Data source: Eurostat

Page 7: Farm structures - European Commission

7

If a threshold was set to separate the biggest farms which together cover 10% of UAA, this threshold would have to be above 3 000 ha in Slovakia and the

Czech Republic, above 2 500 ha in Bulgaria, the UK and Hungary and above 1 000 ha in another 6 Member States. The number of farms affected by such

a threshold is below 1% of all holdings in 21 Member States and comes to roughly 26 000 in the EU (for a total of 16.5 million ha).

Figure 6: Threshold values (top 10% UAA) and number of farms above the threshold, 2013

0

1000

2000

3000

4000

5000

6000

7000

8000

MT SI EL AT IE NL BE CY FI LU IT FR PL HR SE DK ES LT PT DE LV RO EE HU UK BG CZ SK

Number of farms > threshold Threshold value (ha)

Data source: Eurostat

Page 8: Farm structures - European Commission

8

Economic farm size

In the EU-28, the average standard output per

farm was EUR 30 536 in 2013.

The average economic size in the EU-15 (EUR

61 916) is more than seven times higher than

in the EU-N13 (EUR 8 672)1.

In line with their small average physical size,

most EU farms are small in economic terms:

69% of them have less than EUR 8 000

standard output per year and only 10.6% have

more than EUR 50 000.

Many small farms are either subsistence farms

(producing mainly for their own consumption)

or run as part-time operations (see graph 27).

Again, close to half (46%) of the very small

farms (<8 000 EUR) are located in Romania,

another 12% are in Poland.

Between 2005 and 2013, the average standard

output per farm increased by 5.7% per year in

the EU-272. This growth rate was higher in the

EU-N12 (+7.2% per year) than in the EU-15

(+5.1% per year).

This rate is higher than the growth rate for

farm size based on agricultural area, indicating

an increase in the average economic output

per unit of land (due to either a shift to

agricultural activities with higher output values

or an increase in average yields and/or prices).

1 These values are not adjusted for differences in

purchasing power. 2 2005 data for Croatia are not available.

Figure 7: Distribution of farms by economic size class, 2013

See also Common Context Indicator 17: Agricultural holdings (farms) and

http://ec.europa.eu/agriculture/rural-area-economics/briefs/pdf/09_en.pdf

What is the standard output? The standard output (SO) of an agricultural product (crop or livestock)

is the average monetary value of the agricultural output at farm-gate price, in euro per hectare or per

head of livestock. There is a regional SO coefficient for each product, as an average value over a

reference period (5 years). The sum of all the SO per hectare of crop and per head of livestock in a

farm is a measure of its overall economic size, expressed in euro.

0%

10%

20%

30%

40%

50%

60%

EU-28 EU-15 EU-N13

Less than 2 000 euros

From 2 000 to 3 999 euros

From 4 000 to 7 999 euros

From 8 000 to 14 999 euros

From 15 000 to 24 999 euros

From 25 000 to 49 999 euros

From 50 000 to 99 999 euros

From 100 000 to 249 999 euros

From 250 000 to 499 999 euros

500 000 euros or over

Data source: Eurostat

Page 9: Farm structures - European Commission

9

On average, farms in the north-western and

central parts of the EU are biggest in economic

terms (led by the Netherlands, Denmark and

Belgium), while smaller farms are dominant in

the more recent EU Member States (especially

in Romania).

Average farm sizes can differ within a country

(Spain and Italy are good examples), and

averages can hide the fact that there may be

many small and a few very big farms, as is the

case in some Eastern European countries.

Figure 8: Average economic farm size in SO per holding at NUTS 2 level, 2013

Data source: Eurostat

Page 10: Farm structures - European Commission

10

In terms of farm numbers, the smallest farms

in economic terms (blue bar) are clearly

dominant. They make up more than half of all

farms in the EU. Very few farms are in the

biggest economic size class (purple bar,

hardly visible).

Most of the agricultural employment comes

from farms in intermediate economic size

classes (red and green bars).

The largest share of land is managed by farms

in the upper-medium economic size class

(green bar).

These farms also hold most of the total

livestock in the EU – but note the big share

of livestock held by farms in the highest

economic size class – an indication that many

of them are big livestock producers which

generate a lot of output value without

necessarily having much land.

Finally, farms in the upper-medium economic

size class generate most of the total

production value of EU agriculture.

Figure 9: Key farm parameters by economic size class, EU-28, 2013

0%

10%

20%

30%

40%

50%

60%

70%

number of farms jobs (full-time units) land livestock production value

Less than 4 000 euros 4 000 - 24 999 000 euros 25 000 - 499 999 euros 500 000 euros or over

Data source: Eurostat

Page 11: Farm structures - European Commission

11

Declining farm numbers

Farm numbers are continuously decreasing.

After adjusting for changes in thresholds

between survey years, the average annual rate

of decline between 2005 and 2013 stood at 2%

for the EU-27, with greater losses in the

countries that joined the EU in 2004 and 2007

(EU-N12: -2.7% per year) than in the older

Member States (EU-15: -0.9% per year).

Figure 10: Trends in farm numbers, 2003-2013

Figure 11: EU farm numbers 1975-2013

EU-N12, -2.7

EU-15, -0.9

EU-27, -2.0

-3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0

percent per year (average annual rate of change 2003-2013)

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

1975 1980 1983 1985 1987 1990 1993 1995 1997 2000 2003 2005 2007 2010 2013

nu

mb

er

of

ho

ldin

gs

EU-9 (BE, DK, DE, IE, FR, IT, LU, NL, UK) EU-15 (EU-9 + EL, ES, AT, PT, FI, SE)

EU-N12 (BG, CZ, EE, CY, LV, LT, HU, MT, PL, RO, SI, SK) EU-27

Data source: Eurostat

Page 12: Farm structures - European Commission

12

The vast majority of farms that go out of business (or move to a higher size

class) belong to the smallest economic size class. Only from a size class of

100 000 EUR onwards does the overall number of holdings increase.

The observed reduction in farm numbers is thus first and foremost an

indication of farm size growth, in which very small holdings become part

of larger farms.

Figure 12: Change in farm numbers by economic size class, EU-27, 2005-2013

-2 500 000

-2 000 000

-1 500 000

-1 000 000

-500 000

0

500 000

Zero euros Less than2000 euros

2000 to3999 euros

4000 to7999 euros

8000 to14999euros

15000 to24999euros

25000 to49999euros

50000 to99999euros

100000 to249999euros

250000 to499999euros

500000euros or

over

Data source: Eurostat

Page 13: Farm structures - European Commission

13

Organisational structure

In 2013, 97% of all holdings in the EU were

held by a single natural person. In most

cases, this person was also the farm manager,

and the corresponding holdings can be

considered family farms, as opposed to

corporate farms (where the holder is a legal

entity; 2.8% of all farms) or group holdings

(owned by a group of natural persons; 0.7% of

all farms).

These family farms managed 67% of the

agricultural land in the EU-28, while 27.5% of

the area was managed by corporate farms, an

indication of their bigger average size.

Corporate farms and group holdings are most

prevalent in the higher economic size classes.

Corporate farms are most common in France,

which also has the highest number of group

holdings. Together, these two categories

account for one-third (33.2%) of all holdings

in France.

The legal structure of farms is reflected in the

agricultural labour force, where 83% of all

agricultural labour input in the EU-28 is

provided by members of the sole holder's

family.

Figure 13: Legal form of EU farms and type of labour force, 2013

Figure 14: Legal farm status by size class, EU-28, 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sole holderholding

Holding is legalentity

Group holdings family labourforce

non-familylabour force

EU-28

EU-15

EU-N13

99.5% 98.5%

85.5%

55.5%

0.5% 1.3% 11.3%

35.3%

0.0% 0.2% 3.2% 9.2%

0%10%20%30%40%50%60%70%80%90%

100%

Less than 4 000 euros 4 000 - 24 999 000euros

25 000 - 499 999 euros 500 000 euros or over

sole holder legal entity group holdingsData source: Eurostat

Page 14: Farm structures - European Commission

14

Land ownership

More than 43% of the land in the EU-28 is farmed under a tenancy

arrangement.

In Slovakia, Malta and France, this even comes close to 80%, while in

Ireland and Poland only 16% of the land is farmed by tenants.

In Greece, 32% of the agricultural area is managed under share farming or

other modes, most likely as common land.

Figure 15: Land farmed under tenancy arrangements, 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Ir

ela

nd

Po

lan

d

Po

rtu

gal

Gre

ece

Net

her

lan

ds

Ro

man

ia

Slo

ven

ia

Un

ite

d K

ingd

om

De

nm

ark

Spai

n

Fin

lan

d

Au

stri

a

Ital

y

Latv

ia

Cro

atia

Swed

en

Lith

uan

ia

Hu

nga

ry

Esto

nia

Cyp

rus

Luxe

mb

ou

rg

Ger

man

y

Be

lgiu

m

Bu

lgar

ia

Cze

ch R

epu

blic

Fran

ce

Mal

ta

Slo

vaki

a

EU-28

Data source: Eurostat

Page 15: Farm structures - European Commission

15

Farm types and specialisation

Farms can be classified into different types,

according to the share of the farm's main

activity in total farm standard output3.

Number of holdings by farm type

While in the EU-15 34% of all holdings are

specialised in permanent crops (mostly due to

the situation in Mediterranean countries),

granivores (pigs and poultry) and mixed

production systems play a more prominent role

in the EU-N13.

Farm size varies with farm specialisation.

Holdings with no agricultural land are

predominantly producing granivores (or

grazing livestock held in intensive indoor

systems or on common land). Farms with

bigger areas of agricultural land tend to

specialise in field cropping and grazing

livestock

The smallest farms show the greatest diversity

in their farming activities and often practise

mixed crop-livestock farming.

3 For details, see Commission Implementing Regulation

(EU) 2015/220.

Figure 16: Holdings by farm type in the EU-15, 2013

Figure 17: Holdings by farm type in the EU-N13, 2013

field cropping, 25%

horticulture, 3%

permanent crops, 34%

grazing livestock, 23%

granivores, 2%

mixed and non-classified, 13%

field cropping, 33%

horticulture, 1%

permanent crops, 6%

grazing livestock, 13%

granivores, 14%

mixed and non-classified, 33%

Data source: Eurostat

Page 16: Farm structures - European Commission

16

Land use by farm type

The largest share of agricultural land is taken

up by field cropping and grazing livestock

(significantly more field cropping and less

grazing livestock in the EU-N13 than in the

EU-15).

Around one-quarter of the agricultural land in

the EU-N13 belongs to farms which practise a

mix of activities or are not classified.

Farms specialised in horticulture, permanent

crops or granivores take up very little

agricultural land.

Figure 18: Land use by farm type in the EU-15, 2013

Figure 19: Land use by farm type in the EU-N13, 2013

field cropping, 38%

horticulture, 1%

permanent crops, 8%

grazing livestock, 37%

granivores, 3%

mixed and non-classified, 14%

field cropping, 54%

horticulture, 1% permanent crops, 2%

grazing livestock, 17%

granivores, 2%

mixed and non-classified, 25%

Data source: Eurostat

Page 17: Farm structures - European Commission

17

Standard output by farm type

In terms of standard output, farms specialised

in grazing livestock contribute the largest share

in the EU-15, while field cropping and mixed

farming dominate in the EU-N13.

Horticulture, despite its low share in the

number of holdings and in agricultural land

use, contributes 10% to total standard output in

the EU-15, a result of the high value of

horticultural products.

Figure 20: Standard output by farm type in the EU-15, 2013

Figure 21: Standard output by farm type in the EU-N13, 2013

field cropping, 18%

horticulture, 10%

permanent crops, 14%

grazing livestock, 28%

granivores, 18%

mixed and non-classified, 12%

field cropping, 31%

horticulture, 5%

permanent crops, 4%

grazing livestock, 20%

granivores, 14%

mixed and non-classified, 27%

Data source: Eurostat

Page 18: Farm structures - European Commission

18

Structural diversity of farming Structural diversity is here described as the

distribution of agricultural holdings across

different farm types in a given area, measured

by Simpson's Index of Diversity4. When all

holdings in a given region specialise in the

same farming activity, there is no diversity and

the index value is "0". On the other hand, a

perfect distribution of holdings across all farm

types is shown by the index value of 1.

The analysis of the index at Member State

level gives a snapshot of the structural

diversity of agricultural activities in the EU in

2010 (the year of the last agricultural census).

Croatia, Romania and Bulgaria show the

greatest degree of structural diversity with

index values above 0.8. In those countries,

farms are well distributed across several farm

types.

Relative high values of Simpson's Index can be

also observed in a group of 8 countries

(France, Germany, Belgium, the Czech

Republic, Slovakia, Hungary, Poland and

Slovenia), where agriculture represents a rich

variety of activities: in France for example,

35% of the holdings produce grazing livestock,

26% field cropping, 18% permanent crops and

8.4% mixed crops/livestock; the other farm

types (horticulture, granivores, mixed cropping

and mixed livestock) are also represented and

together account for 12% of all holdings.

4 Simpson's Index of Diversity determines the degree of

concentration when individuals are classified into types.

A less diverse structure of agriculture holdings exists in Italy, Spain and Greece, where permanent

crops form the dominant farm type with a share of around 50% or more in all holdings.

Ireland has the lowest degree of farm type diversity, with 87% of all holdings specialised in grazing

livestock. In the United Kingdom and Luxembourg, more than 60% of all holdings specialise in

grazing livestock, while in Cyprus and Finland the same rate of concentration applies to permanent

crops and field cropping, respectively.

Figure 22: Structural diversity in the Member States, 2010

Page 19: Farm structures - European Commission

19

The degree of structural diversity and thus the

different combination of farm types across the

EU is however clearly influenced by external

factors such as topography, climate or other

specific conditions of the territory and this is

even more evident at a lower geographic level.

At regional level, the index values present in

fact a bigger variation than the national ones

and this reflects the specific and local diversity

in term of climate, topographical and social

conditions. The distribution of holdings across

farm types within the same country can change

significantly: in some Mediterranean countries

such as Italy and Spain, the most southern and

coastal regions are characterized by a more

specialised structure of agriculture where very

few farm types dominate the production: in

Sicily, Calabria and Puglia and in Andalucia,

Comunidad Valenciana and Región de Murcia

holdings specialised in permanent crops

dominate the production with a share of at

least 60%.

Figure 23: Structural diversity at regional level, 2010

Page 20: Farm structures - European Commission

20

2. The agricultural labour force

How many people work in EU agriculture?

Labour input in agriculture is notoriously

difficult to survey, and different sources provide

different figures depending on the definitions,

samples and methods used.

Estimates for the number of persons involved in

agricultural activities reach 22.2 million for

2013, many of whom are working part-time.

Converted into full-time equivalents, this comes

to somewhere between 8.7 and 9.5 million.

The share of agriculture in overall employment

is in the area of 4%.

For more information on different ways of

measuring agricultural labour input, see EU

Agricultural Economics Brief no. 8: How many

people work in agriculture in the European

Union?

Figure 24: Share of employment in agriculture, 2016

See also Common Context Indicator 13: Employment by economic activity

Data source: Eurostat

Page 21: Farm structures - European Commission

21

Evolution of agricultural labour input

Over the last decade, the long-term downward

trend in agricultural labour input continued.

Since 2005, more than one out of four

agricultural jobs disappeared (-25.5%).

The period 2005-2010 showed stronger losses (-

4.1% per year on average) than the period 2011-

2017 (-0.9% per year). Since 2015 the numbers

have changed very little.

The greatest reduction can be seen for family

labour (-31.5% between 2005 and 2017), while

hired labour has hardly changed (-1.3%). In

recent years (2011-2017), hired labour has even

increased by 1% per year on average.

Romania reported by far the biggest losses in

agricultural jobs, possibly reflecting a process of

structural adjustment after accession to the EU.

Figure 25: Evolution of agricultural labour input, EU-28

Figure 26: Loss of agricultural jobs by country, 2005-2017

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 0

00

an

nu

al w

ork

un

its

Non-salaried Salaried

-983

-616

-387

-187 -162 -131 -109 -105 -103 -96 -63 -56 -54 -35 -30 -28 -26 -18 -18 -17 -14 -12 -11 -9 -8 -1

1 15

-1 200

-1 000

-800

-600

-400

-200

0

200

1 0

00

an

nu

al w

ork

un

its

Data source: Eurostat

Page 22: Farm structures - European Commission

22

In 2013, roughly 22 million people were

involved in agricultural production. These are

people who were regularly engaged in farm

work, but not necessarily on a full-time basis.

Converted into full-time equivalents, this

represents about 9 million5, i.e. less than one

fulltime job per farm.

Over the years, the agricultural labour force

has declined. Between 2005 and 2015, more

than 3 million full-time jobs were lost – a

minus of 25%.

Most jobs were lost in farms belonging to the

smallest size classes. This is roughly in line

with the reduction in farm numbers, which also

concerned mostly the smallest farms.

See also Common Context Indicator 22:

Farm labour force

5 Depending on the data source, figures vary between

8.7 million and 9.6 million AWU.

Figure 27: Change in agricultural labour by economic farm size, 2005-2013

-1 200 000

-1 000 000

-800 000

-600 000

-400 000

-200 000

0

200 000

Zeroeuros

Less than2 000euros

2 000 - 3999

euros

4 000 - 7999

euros

8 000 -14 999euros

15 000 -24 999euros

25 000 -49 999euros

50 000 -99 999euros

100 000 -249 999

euros

250 000 -499 999

euros

500 000euros or

over

AWU

Data source: Eurostat

Page 23: Farm structures - European Commission

23

Age of farmers6

The majority of farmers in the EU (56%) is

older than 55 years, while only 6% are

younger than 35 years. This means that for

every farmer younger than 35 years, there were

9 farmers older than 55 years in the EU-277 in

2013.

Portugal has the highest proportion of elderly

(above 55 years) farm managers (73.7%),

while Austria has the lowest (28.2%).

The share of young farmers (below 35 years) is

highest in Poland (12.1%), followed by Austria

(10.9%). It is lowest in Cyprus (1.7%),

Portugal and Denmark (both 2.5%).

See also Common Context Indicator 23: Age

structure of farm managers

6 Figures refer to farm managers (the natural person

responsible for the normal daily financial and

production routines of running the holding concerned),

not to the total labour force. 7 Data for Croatia are not available.

Figure 28: Share of farms by age group of manager (EU-27, 2013)

0%

5%

10%

15%

20%

25%

30%

35%

Less than 35 years From 35 to 44years

From 45 to 54years

From 55 to 64years

65 years or overfa

rms

Age of farm manager

EU-27 EU-15 EU-N12

Data source: Eurostat

Page 24: Farm structures - European Commission

24

Figure 29: Age structure of farm managers, 2013

Page 25: Farm structures - European Commission

25

Age and farm size – an inverse correlation?

While average farm size is lowest for elderly

farmers, young farmers especially in the EU-15

tend to manage the largest holdings.

Similarly, the proportion of older farmers is

highest in the smallest farm size class and

decreases for higher size classes.

There seems thus to be an inverse relationship

between farm size and the age of the farm

manager.

These figures suggest that the decline in farm

numbers needs to be put into the demographic

context, where many small farms are managed by

older farmers, often beyond the normal retirement

age. When these farmers stop farming, their farms

are not likely to be maintained as such but will be

merged into other farms. As a result, the overall

number of farms declines and average farm size

increases.

Figure 30: Average farm size by age group of farm manager, 2013

Figure 31: Age of farmer by size of farmland, EU-27, 2013

0

10

20

30

40

50

60

Total Less than 35years

From 35 to 44years

From 45 to 54years

From 55 to 64years

65 years orover

he

ctar

es

pe

r h

old

ing

EU-27 EU-15 EU-N12

0%

5%

10%

15%

20%

25%

30%

35%

40%

zero ha less than 2ha

2 - 4.9 ha 5 - 9.9 ha 10 - 19.9ha

20 - 29.9ha

30 - 49.9ha

50 - 99.9ha

100 ha orover

Less than 35 years From 35 to 44 years From 45 to 54 years From 55 to 64 years 65 years or overData source: Eurostat

Page 26: Farm structures - European Commission

26

Gender of farmers

Women manage less than one-third (28%) of all

holdings in the EU-278. They only farm 13% of

the agricultural area, which means that on average

their farms are less than half as big (7.6 ha/farm)

as that of a male farmer (19.5 ha/farm).

Two out of five female farmers are older than 65

years (40%). For male farmers, this ratio comes to

28%. The proportion of female farmers is thus

greater in the higher age groups (possibly due to

the higher life expectancy of women in general).

Working patterns

Managers of small farms tend to put in less

working time than those of bigger farms. One out

of five farmers with less than 5 ha of agricultural

land spends less than a quarter of his or her

working time on the farm; This percentage

declines with increasing farm size: 82% of

farmers with 100 ha or more work full time.

8 Data for Croatia are not available.

Figure 32: Gender of farmer by age group, EU-27, 2013

Figure 33: Farmers' working time by farm size class, EU-27, 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

total <35 years 35-44 years 45-54 years 55-64 years 65 years andover

Male farmer Female farmer

0%10%20%30%40%50%60%70%80%90%

less than 5 ha From 5 to 9.9ha

From 10 to19.9 ha

From 20 to29.9 ha

From 30 to49.9 ha

From 50 to99.9 ha

100 ha orover

From 1 to 24 percent of a full-time From 25 to 49 percent of a full-time

From 50 to 74 percent of a full-time From 75 to 99 percent of a full-time

100 percent of a full-timeData source: Eurostat